Abstract:
The labour force in India is increasing at 205 percent per annum but employment is increasing only by 2.2 percent annum. Agriculture is not able to provide gainful employment to the surplus rural labour. Development planners are, therefore turning towards non-farm employment generation. Employment potential of cottage and rural small industries. Size and composition of family and hired labour, differential contribution of men and women to the household employment among the workers, wage rates and intensity of employment are some of critical issues that need to be analysed to comprehend the employment and income aspects of rural entrepreneurs. In the preparation of every Five Year Plan, and formulation of industrial policy, the Government of India has repeatedly expressed that employment and income generation for the rural poor as its policy adjective and underlined the need to promote the rural, small and labour intensive industries. Approach paper the Eighth Five Year Plan 1990-95 observed that the numerous state interventions reservations, fiscal discrimination favouring small industry, subsidies, promotional measures during the last three decades have been half hearted and ineffective. Many studies in South India found that the cost of employment generation has been formed to be low in brick manufacturing, handloom industry, grain processing and oil seed processing. Rural service enterprises such as bicycle repairing, agricultural implements servicing, tailoring, tyre cart operation for local transport were formed to enjoy more employment for local transport were formed to enjoy more employment potential. With minimum outlays, they are able to generate productive, gainful and sustaining work opportunities which have helped in reducing the incidence of poverty among rural poor. The present study attempts to analyse the employment and income potentials of rural industries in of Tamil Nadu.
